• Has the UK Buy to Let market peaked?
• If so where should we look to invest now?

As house price rises slow down in the UK and the buy-to-let market approaches saturation point, where can property investors go to boost their portfolios?

Kate Walker, sales manager of "French Investment Property", says the French lettings market is far more sophisticated than our own and that 25 per cent of the country's housing stock is owned and let by private landlords.

'The French don't have pensions in the same way as we do,' she says, 'so many buy a house or flat to let. Some have a portfolio of six or seven at retirement.'

Low prices and strong rental demand for modern properties in town centres create an ideal investment opportunity. 'The best investment is a studio or one-bedroom apartment near the Eiffel Tower, which will cost about £80,000,' says Walker. 'Other towns such as Lille, Lyon and Montpellier are also a good bet.'

‘For example, a studio flat in Lille will cost about 38,000 euros and earn rent of about 3,200 euros a year, giving a gross yield of about nine per cent.’

Walker also says letting to university students is much more straightforward in France than in the UK. 'Students at the law school in Nice, for example, are sensible people and the rent is most likely being paid by their parents, so they will look after the place.'

‘Unlike the British, French people are moving out of rural areas and into towns. They also shun older properties in favour of modern homes, which, says Walker, are what investors should buy. The minimum lease for tenants is usually three years, which is good for investors looking for a steady income."

Buying property for investment in France can become a highly profitable and enjoyable undertaking but, as with all investments, you need to "buy right" and manage your investment afterwards.

According to the Observatoire de l’Immobilier de la Côte d’Azur the average price of a 3 bed resale apartment in Cannes agglomeration (which covers a very wide area including some remote parts) rose 22.3% in the year 2002 to 2003.

Such price rises are a recent phenomenon and the trend looks set to continue with more and more Northern Europeans seeking to invest in this area and many budget airlines opening up routes to the South of France. Other European countries have been seeing excellent capital appreciation for many years – in France it’s a new thing so most experts believe that there are still many years left before " bubble" bursts.

We can help you find a property and tell you what we think it is likely to return based upon advice we have from our French contacts. Please note, however, that what we say is for general guidance only and you must obtain your own independent advice before committing yourself to anything.

In order to ensure you proceed with the investment as safely as possible and smoothly we have gathered together a host of English speaking independent professionals based in France who will assist you every step of the way towards acquiring your investment property letting and managing it thereafter.

We are currently specialising in property for sale in the Côte d’Azur and Languedoc regions as the property market and our contacts in this beautiful part of the world are particularly strong here.

Our buy-to-let properties under this heading are classic buy to let style not sale and leaseback properties (under the "Residence de Tourisme" Scheme) as we remain to be convinced these are the best investment vehicle for UK investors. We note the proliferation of websites promoting these. Go here for sale and leaseback opportunities and our views upon them.

We do not give financial advice but can put you in touch with our contacts who can assist you in unlocking UK equity and/or obtaining a mortgage on the French property you choose.

Simply go here and complete the enquiry form to be put in touch with a legal advisor.

Click here to contact us.